Monday, March 25, 2013

Equities Fall Back as Terrible Reality of Cyprus Sets In

Eurozone Official Terms Theft of Bank Deposits a "Template"

An incredibly frightening and revealing remark by a senior Eurozone official, Dutch Finance Minister Jeroen Dijsselbloem, scares the daylights out of investors. 

Today, it's the Russians who must pay the price in order for Europe to avoid--or postpone--a financial catastrophe. The Russians are an easy target. Their money must represent ill-gotten gains, Europeans and investors across the world sneer. 

But who will be forced to pay tomorrow, aside from ordinary folks, of course, whose lives are being destroyed by elites advancing under the twin banners of Austerity and Economic Reform? Once it's all right for one European government, no matter how small and politically insignificant, to loot some bank accounts, it will be all right for other governments to loot other bank accounts. Eventually, all bank accounts could be vulnerable--up for grabs. From freezing and "raiding" foreigners' uninsured bank accounts to freezing and raiding citizens' insured accounts--the distance isn't really so great. Stealing begets stealing.

That is the fear that could cause runs on banks not seen since the 1920s and '30s.